Canada: Dismay at EU pork export refunds

The Canadian Pork Council (CPC) has stated that the
Canadian ministry of agriculture is dismayed at the news that the EU has granted
pork export subsidies to its member states.

The subsidies, which amount to around CAD45 (€31) per 100kg carcase meat -
fresh or frozen and CAD27 (€19) per 100kg pig stomach - are applicable for all
destinations outside the EU.

The agriculture ministry is to explore the other options open to persuade the
EU to pursue an alternative, less trade damaging path.

Pork crisisAccording to Clare Schlegel, president of the
CPC, "we understand the EU's reasons behind this move in view of the economic
crisis faced by its pork producers. However, we in Canada are also facing such
challenges. These subsidises will force us, the US, Brazilian and other pork
exporters outside the EU to cut prices in order to remain competitive".

Government subsidies directly lowering export prices are considered the most
distorted form of government assistance to agriculture. Removing such government
export subsidies has been the core objective of the WTO Doha Round of
negotiations and a difficult point between the EU, the US and Canada.

In the US and Europe, farmers have long been receiving subsidies and there is
an element of debate over whether politicians prolong giving them in order to
gain the farmers' vote. Studies have also revealed that much of the time
subsidies end up in the pockets of larger farmers and not always in the small
farms for which they are destined.